The Worst Advices About Car Insurance Renewal

  • Added:
    Sep 09, 2014
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    1110
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The Worst Advices About Car Insurance Renewal Photo by Akash Naidu

Car insurance renewal is an important thing. However, there are certain advices regarding car insurance renewal which must be avoided. Many people avoid renewing their car insurance due to various such myths. These kinds of worst advices cause people to take wrong decisions.
This article reveals all such advices which you should avoid in terms of car insurance renewal.
When renewing car insurance, the car’s color will impact rate of premium
The truth is that car’s color has no connection with the premium rate. The insurance companies don’t consider the vehicle’s color whether it’s black, red or silver. The insurer will consider your vehicle’s make, model and engine details along with the vehicle’s manufacturing year when you renew your car insurance.
New vehicles demand higher premium while renewal
• The common misconception is that thieves tend to have a greater attraction towards new vehicles. However, the truth is completely different.
• Thieves do not follow or have any such inclination. In fact, statistics show that the number of old cars being stolen is greater than the new cars. This is because of costlier components of certain older variants, many of which are not available in the market.
1. Therefore, car insurance is vital in both cases whether it’s a new car or old car. It will save you from a great financial burden.
A comprehensive coverage will give me a new car when damaged
• This a common misconception related to car insurance renewal. However, the truth is that your insurer will just pay the repairing costs when your vehicle gets damaged.
• A full coverage plan is a mixture of collision insurance & comprehensive cover. This covers accidental as well as non-accidental damages which result to your vehicle due to certain mishaps. It also covers third-party liability. Hence, it’s advisable to get a full car insurance coverage to stay protected from all odd situations.
After renewal of car insurance, my personal things get lost during car damaged are also covered
The truth is that you should always read your policy documents carefully before considering such facts. There are certain monetary limits which the insurer has on one’s lost things. However, it does not mean that all your lost things will be insured during the car’s damage.
Even after renewal, my car insurance policy can terminate anytime
This is another misconception which keeps many people away from buying and renewing car insurance. The truth is that your car insurance won’t terminate before a state expiry time as mentioned in the document. After you renew your policy, it’s valid for another 1 year. The policy will only terminate in the middle of policy term in case of fraud or deficient premium payments.
Conclusion-
It’s important to avoid all the above worst advices related to car insurance policies to benefit continuous insurance benefits. Also remember to purchase any policy after carefully reviewing the company details for its validity as well as quality customer service options.

Author's Profile

Akash Naidu is the author of this post has been in the field of insurance of over 2 decades. Today, He consults institutional and independent insurance customers on making correct buying decisions with respect to Travel, health and Auto Insurance. For more information please visit: - Car Insurance &Motor Insurance.


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